China says EU probe into Chinese electric vehicle exports, subsidies is protectionist

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China's Commerce Ministry has protested a decision by the European Union to investigate exports of Chinese electric vehicles, saying it is a protectionist action aimed at distorting the supply chain

HONG KONG — China's Commerce Ministry has protested a decision by the European Union to investigate exports of Chinese electric vehicles, saying Thursday that it is a “protectionist” act aimed at distorting the supply chain.

The EU announced Wednesday it will probe government subsidies provided to Chinese automakers that the EU contends keep EV prices artificially low. China has become the biggest market for electric vehicles after investing billions in subsidies to gain an edge. Automakers like BYD and Geely have quickly gained market share after launching sales of EVs to Japan and Europe.

“What I want to emphasize is that the investigation measure that the European Union plans to take is to protect its own industry in the name of fair competition," Commerce Ministry spokesperson He Yadong said at a briefing in Beijing.

“It’s naked protectionist behavior that will seriously disrupt and distort the global automotive industrial chain and supply chain including the European Union, and will have a negative impact on China–EU economic and trade relations,” he said.

In a statement, the ministry urged the EU to create a “fair, non-discriminatory and predictable” market environment.

In China, EV prices start as low as 100,000 yuan ($14,500) for a compact SUV with a 400-kilometer (250-mile) range on one charge.

On Thursday, Cui Dongshu, head of the China Passenger Car Association, also opposed the investigation in comments written on his WeChat social media account.

“I personally firmly oppose the EU’s evaluation of China’s new